FedEx Q4 2026 earnings beat but stock falls on weak guidance

On the bottommost line, the 4th produced adjusted EPS of $6.31, topping the $5.96 statement estimation tracked by CNBC. Sales of $25.01 cardinal represented a 13% year-over-year summation and cleared the $24.04 cardinal Wall Street target.

Full-year gross reached $94.7 billion, a leap from $87.9 cardinal 12 months earlier, portion adjusted diluted EPS of $20.24 came successful supra the $19.30-to-$20.10 scope the institution had antecedently acceptable arsenic its target.

For calendar twelvemonth 2026 — reflecting FedEx's displacement to a December fiscal year-end — the institution said it expects astir 11% gross maturation and adjusted diluted net per stock of $16.90 to $18.10. That forecast covers lone continuing operations and excludes the precocious spun-off FedEx Freight business. The caller net people was "slightly beneath expectations, giving absorption country to rise guidance depending connected however the twelvemonth progresses," according to Bloomberg, which attributed the banal unit successful portion to that gap.

Results for the play besides captured the freight part for the last clip earlier its exit from the consolidated company. As portion of the June 1 separation, FedEx Freight became an independently traded entity and transferred a currency dividend of astir $4.1 cardinal backmost to FedEx Corporation.

Profitability successful the Federal Express conception — present FedEx's superior cognition — compressed twelvemonth implicit year, with the operating borderline retreating to 7.7% from 8.4%, pressured by higher wage and benefits expenses, rising purchased proscription costs, and accrued substance spending. The company's substance measure reached $1.43 cardinal for the quarter, astir treble the $864 cardinal recorded a twelvemonth earlier — a 66% increase. The institution besides noted that the grounding of its MD-11 cargo pitchy fleet and planetary commercialized argumentation changes were headwinds during the period.

"Team FedEx delivered an awesome decorativeness to a beardown fiscal year," CEO Raj Subramaniam said successful a statement. On the expert call, Interim CFO Claude Russ indicated that easing compensation headwinds would assistance assistance margins successful coming periods, Reuters reported.

FedEx besides said it plans to repurchase up to $1 cardinal successful banal during calendar 2026 and raised its yearly dividend by 5%, aft adjusting for the freight spin-off.